Uganda Financial Markets Strengthened at Absa Africa Forum

Uganda’s financial markets were in the spotlight as regulators, policymakers, and private sector leaders gathered in Kampala for the Absa Africa Financial Markets Index and Economic Outlook Forum. The forum, held with OMFIF, examined market stability, reform priorities, and investment flows shaping Africa’s financial future.

Uganda Financial Markets Gain Stability and Investor Confidence

Absa Uganda Managing Director David Wandera said Uganda’s financial markets are not only growing but also becoming more stable. Inflation has stayed below the Bank of Uganda’s five percent target. The Central Bank Rate is held at 9.75 percent. The Uganda Shilling ranks among the most stable currencies in Africa. “Uganda’s financial markets are no longer just growing, they are stabilising with confidence,” Wandera noted.

He added that trust is essential for deeper markets. Reforms in 2025, including collective investment schemes, securities offerings, licensing, approvals, and corporate governance, have improved transparency. They have also unlocked domestic capital and attracted long-term international investment. “Market depth is built on trust, and trust is built through strong regulation,” he added.

Government Commitment to Market Depth and Growth

Permanent Secretary to the Treasury, Ramathan Ggoobi, acknowledged global economic challenges. These include tighter financial conditions, geopolitical tensions, and shifting trade dynamics. However, he noted disciplined economies can still seize opportunities. “Even in a period of tighter financial conditions and global uncertainty, opportunity still exists for economies that stay disciplined,” Ggoobi said.

He reaffirmed the government’s commitment to macroeconomic stability. Uganda’s economy is projected to grow between 6.5 and 7 percent in 2026, even in an election year. Uganda continues to rank among the fastest-growing economies regionally and globally. Prudent fiscal and monetary management support this growth.

Ggoobi praised regulators and market institutions for Uganda’s performance on the Africa Financial Markets Index. The country now ranks third on the continent. He said the next phase must focus on deepening and broadening capital markets. This will support sustained and inclusive growth. Priorities include rebuilding capital markets for long-term debt and equity financing. Attracting venture capital for innovation with lower collateral requirements is also key. He also suggested exploring an SME-focused stock exchange for firms that do not meet main-board listing criteria.

Bank of Uganda Highlights Capital Mobilisation and Market Depth Needs

Governor Michael Atingi-Ego said Uganda’s main challenge is no longer regulatory sophistication. The real challenge is capital mobilisation and market depth. The central bank’s 2022–2027 strategic targets include achieving a 75 percent financial inclusion index and a 46 percent e-payments index. Some financial market development targets have already been surpassed.

Atingi-Ego noted that recent gains were supported by reforms in core market infrastructure. These include the REPO and money markets. He stressed that the achievements reflect collective effort across government, regulators, Parliament, and market participants. However, pension fund development remains the most underdeveloped pillar. Existing market infrastructure is still underutilised. Mobilising more long-term capital is essential to fully unlock Uganda’s market potential.